Not Registered? Register Now.

1. My Profile >2. Additional Information

By submitting below you certify that you have read and agree to our privacy policy.

PRESS ROOM

WisdomTree Launches Japan SmallCap Smart Beta ETF

Thursday 12th July '18


DFJ Offers Investors Exposure to Japan’s Local Economy


WisdomTree, the exchange traded fund ("ETF") and exchange traded product ("ETP") sponsor, today announced the launch of the WisdomTree Japan SmallCap Dividend UCITS ETF on the London Stock Exchange.  The fund seeks to track the price and yield performance of the WisdomTree Japan SmallCap Dividend Index and has a net expense ratio of 0.48%.

Fears at the prospect of a global trade war has caused huge volatility in equity markets in 2018 but for those looking to maintain long-term allocations to equities, there are segments of the equity market that tend to be less affected by the current issues. The investment case for Japanese small-cap companies lies in the fact that they are more locally oriented and provide greater exposure to the local economy’s endogenously driven growth cycle, and with strengthening domestic demand, the index’s constituents derive more than 80% of their weighted average revenue inside Japan[1], compared with 57% for Japanese large-caps.

Christopher Gannatti, WisdomTree Head of Research in Europe said, “We think Japanese small-caps provide the purest way to tap into the local economic growth prospects. After decades of deflation, deleveraging and demand contraction, Japan’s domestic demand is now driving growth. A structural shortage of labour is forcing improvements in both the quality of employment and the incomes earned from employment and the government are delivering on a policy switch to ‘Fiscal Dominance’ and Japanese small-caps have performed strongly across multiple time horizons in the past ten years, offering differentiation relative to large-caps alone[2].”

“With the Yen searching for a firm direction over the past few years, many investors have been uncertain as to the best way to invest in Japanese equities. If investors want to try to side-step the Yen’s movements and benefit from growth within Japan, small-caps can offer a potential, domestically-focused opportunity,” he said.

Rafi Aviav, WisdomTree Head of Product Development in Europe, said, “The WisdomTree Japan SmallCap Dividend UCITS ETF taps into the Japanese domestic economy while offering exposure to the size and value factors, which have been the clear winners from a factor perspective in Japan in the past decade[3]. The index has a live track record of more than 10 years, through which it has outperformed its small-cap benchmark by 1.7% per annum[4] and its large-cap benchmark by 3.4% per annum[5], while maintaining low correlations (around 0.5[6]) with European and US markets, true to its domestic focus.  We believe this fund offers a unique way to access Japanese small-caps and it is particularly relevant in these times, when global free trade may be challenged.”

Japan SmallCap Dividend UCITS ETF: Under the Hood

The WisdomTree Japan SmallCap Dividend index methodology incorporates the following:

  • Index universe: Constituents must be listed on the Tokyo Stock Exchange and have paid at least $5 million in gross cash dividend on shares of the common stocks in the prior annual cycle to annual reconstitution and they must have a market capitalization of at least $100 million on screening date.
  • Constituent selection: From the above universe, the 300 largest companies by market capitalization are removed to create the index. The selection parameters are therefore quite broad.
  • Weighting: Weighting is on the basis of cash dividends paid (dividend-per-share x number of shares outstanding). There is a cap of 2% to any single constituent and a cap of 25% to any single sector.
  • Volume screen: WisdomTree’s process is also sensitive to the liquidity of underlying constituents, ensuring that constituents with larger weights have greater liquidity to support those bigger exposures.

Product Information:

 

Share Class Name Exchange Trading Currency Exchange Code ISIN
WisdomTree Japan SmallCap Dividend UCITS ETF - USD LSE USD DFJ IE00BFXYK923
WisdomTree Japan SmallCap Dividend UCITS ETF - USD Acc LSE USD DFJA IE00BFXYKD63


Size:
Characterised by smaller companies rather than larger companies by market capitalization. This term is also related to the size factor, which associates smaller market cap stocks with excess returns vs. the market over time.

Value: Characterised by lower price levels relative to fundamentals, such as earnings or dividends. Prices are lower because investors are less certain of the performance of these fundamentals in the future. This term is also related to the value factor, which associates these stock characteristics with excess returns vs. the market over time.

- END -

Notes to Editors

 

About WisdomTree UK Ltd.

 

WisdomTree Investments, Inc., through its subsidiaries in the US, Europe and Japan (collectively, "WisdomTree"), is an exchange traded fund ("ETF") and exchange traded product ("ETP") sponsor. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree UK Limited, it sponsors WisdomTree UCITS ETFs and ETPs from ETF Securities and Boost, in a wide range of asset classes, including short and leverage ETPs. WisdomTree currently has approximately $64.1 billion (as of 11 May 2018) in assets under management globally. For more information, please visit www.wisdomtree.com.

WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.

 

Disclaimer

 

The content on this document is issued by WisdomTree UK Ltd (“WTUK”), which is authorised and regulated by the Financial Conduct Authority (“FCA”). Our Conflicts of Interest Policy and Inventory are available on request.

 

For professional clients only. Past performance is not a reliable indicator of future performance. Any historical performance included on this document may be based on back testing. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested performance is purely hypothetical and is provided on this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. The value of any investment may be affected by exchange rate movements. Any decision to invest should be based on the information contained in the appropriate prospectus and after seeking independent investment, tax and legal advice. These products may not be available in your market or suitable for you. The content of this document does not constitute investment advice nor an offer for sale nor a solicitation of an offer to buy any product or make any investment.

 

An investment in ETPs is dependent on the performance of the underlying index, less costs, but it is not expected to match that performance precisely. ETPs involve numerous risks including among others, general market risks relating to the relevant underlying index, credit risks on the provider of index swaps utilised in the ETP, exchange rate risks, interest rate risks, inflationary risks, liquidity risks and legal and regulatory risks.

 

The information contained on this document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any province or territory thereof, where none of the Issuers or their products are authorised or registered for distribution and where no prospectus of any of the Issuers has been filed with any securities commission or regulatory authority. No document or information on this document should be taken, transmitted or distributed (directly or indirectly) into the United States. None of the Issuers, nor any securities issued by them, have been or will be registered under the United States Securities Act of 1933 or the Investment Company Act of 1940 or qualified under any applicable state securities statutes.

 

The products discussed on this document are issued by one of WisdomTree Issuer PLC and Boost Issuer PLC (each of them separately, an “Issuer”).

This document may contain forward looking statements including statements regarding our belief or current expectations with regards to the performance of certain assets classes and/or sectors. Forward looking statements are subject to certain risks, uncertainties and assumptions. There can be no assurance that such statements will be accurate and actual results could differ materially from those anticipated in such statements. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements.

 

WisdomTree Issuer PLC

 

WisdomTree Issuer PLC is an umbrella investment company with variable capital having segregated liability between its funds organised under the laws of Ireland as a public limited company and authorised by the Central Bank of Ireland (“CBI”). WT Issuer is organised as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) under the laws of Ireland and shall issue a separate class of shares ("Shares”) representing each fund. Investors should read the prospectus of WT Issuer (“WT Prospectus”) before investing and should refer to the section of the WT Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in the Shares.

 

Notice to Investors in Switzerland – Qualified Investors

 

The distribution of shares of WisdomTree Issuer Plc sub-funds (the “Funds”) in Switzerland which have been registered with the Swiss Financial Market Supervisory Authority (FINMA) will be made to, and directed at, qualified investors. The Funds which have not been registered with the FINMA will be marketed exclusively to regulated qualified investors. The Representative and Paying Agent in Switzerland is Société Générale Paris, Zurich Branch, Talacker 50, PO Box 5070, 8021 Zurich, Switzerland. The prospectus, the key investor information documents (KIID), the Articles and the annual and semi-annual reports are available free of charge from the office of the Swiss Representative and Paying Agent.

 

For Investors in Malta:

 

This document does not constitute or form part of any offer or invitation to the public to subscribe for or purchase shares in the Fund and shall not be construed as such and no person other than the person to whom this document has been addressed or delivered shall be eligible to subscribe for or purchase shares in the Fund. Shares in the Fund will not in any event be marketed to the public in Malta without the prior authorisation of the Maltese Financial Services Authority.

 

For Investors in France:

 

The information in this document is intended exclusively for professional investors (as defined under the MiFID) investing for their own account and this material may not in any way be distributed to the public. The distribution of the Prospectus and the offering, sale and delivery of Shares in other jurisdictions may be restricted by law. The Issuer is a UCITS governed by Irish legislation, and approved by the Financial Regulatory as UCITS compliant with European regulations although may not have to comply with the same rules as those applicable to a similar product approved in France. The Fund has been registered for marketing in France by the Authority Financial Markets (Autorité des Marchés Financiers) and may be distributed to investors in France. Copies of all documents (i.e. the Prospectus, the Key Investor Information Document, any supplements or addenda thereto, the latest annual reports and the memorandum of incorporation and articles of association) are available in France, free of charge at the French centralizing agent, Societe Generale at 29, Boulevard Haussmann, 75009, Paris, France. Any subscription for Shares of the Fund will be made on the basis of the terms of the prospectus and any supplements or addenda thereto.

 

Index Disclaimer

 

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is affiliated with WisdomTree Investments Inc, and neither approves, endorses, reviews or recommends the WisdomTree EUR Aggregate Bond Enhanced Yield UCITS ETF or the WisdomTree EUR Government Bond Enhanced Yield UCITS ETF (the “Funds”). Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays Euro Aggregate Enhanced Yield Index or the Bloomberg Barclays Euro Treasury Enhanced Yield Index (the “Enhanced Yield Indices”), and neither shall be liable in any way to WisdomTree Issuer PLC, investors in the Funds or other third parties in respect of the use or accuracy of the Enhanced Yield Indices or any data included therein.